Context: According to the report, India must achieve a Compound Annual Growth Rate (CAGR) of 8.4% in dollar terms by 2027. This corresponds to 11-11.5% nominal GDP growth annually in rupee terms, attainable with a 6.5-7% growth rate.
Let’s Revise Basics:
State Bank of India’s Economic Research Department’s report :
- In 2014, India held the tenth rank, but it has moved seven places upward since then.
- India’s trajectory since 2014 indicates that it will likely become the world’s third-largest economy by 2027 or FY28.
- According to SBI Ecowrap India is likely to get the tag of world’s third largest economy by FY28.
- There is a growing consensus that India’s GDP in Q1FY24 may exceed 8%, resulting in GDP growth surpassing 6.5% in FY24.
- The prediction is based on actual GDP data as of March 2023.
- They have revised the earlier forecast of achieving this status by 2029 to 2027, two years earlier.
- The current growth rate indicates that India is expected to surpass Japan and Germany in 2027.
- The growth in India’s economy from 2022 to 2027 exceeds the size of Australia’s current economy at $1.8 trillion.
India’s Growth Projections and PM Modi’s Vision
- Consensus on High Growth: Economists project Q1FY24 GDP in India to surpass 8%, expecting 6.5-7% growth as the “new normal.”
- Sustained Goldilocks Period: Report highlights India’s sustained balance and prosperity, remarkable in potential to become the world’s third-largest economy.
- State Milestones: By 2027 (or FY28), Maharashtra and Uttar Pradesh to exceed $500 billion as India ranks third in the global economy.
- GDP Comparison: By 2027, major Indian states’ GDP will surpass economies of Asian and European countries like Vietnam and Norway.
- PM Modi’s Vision: PM Modi confident India will be top three global economies if elected for a third term.His government has seen India rise from the tenth to the fifth position in the world economy since 2014.
India’s Economy Targets Growth,India’s Economy Targets Growth
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